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Questions & Answers

How can I gift money to my family for an EB-5 investment?

I have $200,000 in savings and $300,000 in house equity. Can I take a loan on the equity in my home and gift it to my brother, along with my savings, for him to invest into a institution that qualifies for EB-5? Also, on his application I know he has to prove where he got the money. On my end, what info will I need to provide about the money I give him?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    You will need to authenticate the lawful source of the investment funds and show how lawful business or assets generated the required income or investment.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    A gift is OK - you will need to show your lawful source of the funds such as purchase and sale contract for the house or loan documents, tax returns for your business or personal income, etc.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    Yes you can gift it, but you still have to show how you earned that money. Also if you are a U.S. resident, look at gift tax issues.

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    John J Downey

    Immigration Attorney
    Answered on

    As of now you may gift it to your brother. You must show the sources of the funds. Show how you were able to accumulate the $200,000 in savings, e.g. your employment history along with wage statements and any company bonuses, etc. Then show the mortgage documentation.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Currently, you may gift the funds to your brother and have him be the investor in the EB-5 program. However, Congress is currently considering limiting or restricting who may give a gift of funds to the EB-5 investor and it could all change after September 30, 2015. As to the source of funds and tracking, it is usually the rule of thumb that the person whose assets are the basis of the EB-5 investment funds should have either the annual income of $200,000 or net assets of $1 million. We also need to track dollar for dollar, how you have accumulated $200,000 in savings and how you obtained the house (how you funded the purchase) where you are pulling $300,000 in equity. Finally, as there is an administrative/syndication fee associated with regional centers (institutions) of at least $50,000, your brother will also have to obtain that amount and show the source of funds for that as well. This is a complicated and somewhat arduous process, and both you and your bother must have patience and work with an experienced EB-5 attorney who will take the time to explain things in detail and carefully walk you through the process.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    Yes you can. You will have to show how you got the whole $500,000 and prepare a deed of gift to your brother.

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